Light olefins
Overview
The global light olefins market is made up of ethylene and propylene monomers. These product markets can be affected by a great many factors.
Ethylene is the most widely used commodity chemical and is produced globally in all major regions. It is converted into many products used in daily life like plastic packaging, durable goods, hygiene products and other consumer items. The ethylene market is driven primarily by regions of low production cost and regions of high demand growth. Polyethylene, ethylene’s largest derivative, represents about 65pc of global ethylene demand. Anyone involved in the ethylene industry – directly or indirectly – needs market and pricing insight to anticipate supply shortages and potential swings in pricing.
Propylene is the second most widely used commodity chemical and is produced globally in all major regions. Propylene is a volatile commodity because of its predominantly co-product nature and unpredictable supply, but recently the industry has been trending to more on-purpose production. It is converted into many products used in daily life like plastic packaging, durable goods, automotive products, and woven fabrics. Polypropylene, propylene ’s largest derivative, represents about 70pc of global propylene demand. Anyone involved in the propylene industry – directly or indirectly – needs market and pricing insight to anticipate supply shortages and potential swings in pricing.
Our light olefins experts will help you determine what trends to track and how to stay competitive in today’s ever-changing global market.
Latest light olefins news
Browse the latest market moving news on the global light olefins industry.
Petrocuyo dismisses Ensenada shutdown speculation
Petrocuyo dismisses Ensenada shutdown speculation
Sao Paulo, 21 August (Argus) — Argentinian polypropylene (PP) producer Petrocuyo has denied market rumors that its Ensenada plant will shut down indefinitely, saying the facility is scheduled only for a routine maintenance turnaround expected to last around two to three weeks. A company source told Argus that reports circulating in the market about a broader production stoppage were "totally incorrect" and stressed that the company was planning only a short maintenance outage. The source added that Petrocuyo has sufficient inventories to cover customer requirements and does not expect any significant impact on sales or regional supply during the maintenance period. The clarification comes amid heightened market speculation over the status of the Ensenada facility, given the importance of the facility within Argentina's polypropylene supply chain. According to the company source, operations outside the planned turnaround continue normally and the producer is not undertaking any extraordinary measures beyond its usual maintenance activities. The market reaction reflects broader uncertainty across the global polymers industry. Polypropylene producers in Latin America continue to face pressure from weak demand growth, abundant international supply and aggressive competition from imported material, particularly from Asia. These conditions have compressed margins across the value chain and fueled concerns whenever production outages emerge in the region. For Petrocuyo, however, the maintenance appears to be operational rather than structural. The company source said inventory levels remain adequate and downplayed the likelihood of any meaningful disruption to the market. The source also suggested that some of the rumors may stem from misinterpretations of routine maintenance activities in an environment already marked by oversupply and intense competition. Market participants are expected to continue monitoring the outage closely, given Petrocuyo's position as Argentina's sole polypropylene producer. While the Ensenada site is an important supplier of homopolymer PP to the domestic market, the company also operates its Luján de Cuyo plant in Mendoza, which remains in operation and produces a broader range of polypropylene grades. By Fred Fernandes Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Europe PE: Market awaits clearer direction for Sep
Europe PE: Market awaits clearer direction for Sep
London, 21 August (Argus) — The European polyethylene (PE) market was calm this week as the summer lull continued to weigh on trading activity. Many market participants were away from their desks, with seasonal holiday closures at many converters' plants also reducing prompt restocking needs – with pockets of prebuying in July also covering some buyers' requirements for August and early September. Many buyers remain in a wait-and-see mode awaiting clearer direction for September pricing. Seasonal restocking activity is expected to pick up in September, and has kept many sellers optimistic of targeting increases in PE prices in the coming weeks. Some sellers have reported pre-buying demand for September from converters looking to hedge against any increases in short term prices. But the demand picture is expected to become clearer in the coming weeks on whether any meaningful support to fundamentals is seen, which could help PE producers widen margins. Upstream crude prices firmed this week after the memorandum of understanding between the US and Iran lapsed, and with vessel traffic through the strait of Hormuz dropping to a record low. Naphtha prompt's price also rose to €675/t on 20 August, from €650/t on 14 August. Naphtha has so far averaged €11/t lower in August – compared with the July average of €656/t – but could moderate to just a €2/t decrease in the average by the end of the month. This backdrop will set the stage for next week's negotiations of feedstock ethylene's September monthly contract price (MCP). Conditions remain challenging in many downstream value chains, which has kept converters mostly err on the side of caution. Import arbitrages remain workable from the US for HDPE and LLDPE grades, and have continued to set the spot price floor in the European market. And with spot prices remaining at wide gaps to contract prices, some buyers held the view of limited upside risk on PE pricing and keeping procurement confined to a need-to basis. Some reports were also heard of competitive offers from the Middle East but logistical bottlenecks persist on shipping from Red Sea ports – particularly with vessel congestion at the port of Jeddah. Converters are also mindful of inventory risks further ahead in the fourth quarter in case of any bearish developments in pricing. There have been some differences between the PE grades, however, with some strengthening seen in LDPE fundamentals. A producer in the Netherlands was heard to have declared force majeure on LDPE supplies earlier in August, which has resulted in tighter supplies on the part of other sellers. Some producers reported being sold out on LDPE volumes for delivery August. And with LDPE supply dynamics being more domestic in the European market, this could continue to lend support to LDPE prices going into September. Low water levels in the Rhine and Danube rivers have continued to affect operating rates at many crackers and polymer plants inland in Europe. Outages persist at some PE plants in central-eastern Europe, and force majeure on supplies remain in place from some plants in that region. This has contributed in keeping PE prices in central-eastern Europe at a premium to northwest Europe and the Mediterranean regions. Against the backdrop of ethylene's August MCP settling at a €42.50/t increase from the July MCP, some PE producers sought as much as €100/t increases in their freely negotiated PE contract prices. Buyers pushed back against any increases in their freely negotiated PE contract prices, arguing these remain disconnected to spot prices and the global market. Settlements were reported in wide ranges, but were concluded at price rollovers in many cases – except for LDPE grades. Some producers reported settlements at increases matching the increase in ethylene's August MCP, while steeper increases of up to €100/t were also reported for LDPE grades. Some buyers also reported securing €20-30/t decreases in their freely negotiated HDPE and LLDPE contract prices, in instances where underlying prices were relatively high. Negotiations are ongoing in some cases for LDPE and LLDPE contracts. For all HDPE grades, the Argus deltas for August were assessed at rollovers. For LDPE and LLDPE butene, the Argus deltas for August will be assessed next week. Spot prices of all HDPE grades and of LLDPE butene were assessed stable this week. It remains to be seen if sellers' targets of securing higher prices for September-delivery volumes come to fruition in the coming weeks. The spot price of LDPE was assessed €50/t higher at €1,200-1,300/t ddp northwest Europe. Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Texas court authorizes Braskem Idesa funding
Texas court authorizes Braskem Idesa funding
Sao Paulo, 21 August (Argus) — The US Bankruptcy Court for the Southern District of Texas has authorized Mexico-based petrochemical producer Braskem Idesa's initial Chapter 11 requests, including access to debtor-in-possession financing intended to support the company's operations during its financial restructuring. The case, filed on 17 August, is proceeding before Judge Christopher M. Lopez in the Houston division. Braskem Idesa filed for Chapter 11 protection to implement a restructuring plan negotiated with key creditor groups and other stakeholders. Court filings state that the company intends to preserve business continuity while restructuring its balance sheet through the US bankruptcy process. Braskem Idesa said in a declaration submitted in support of the filing that its financial difficulties resulted from a prolonged downturn in the global petrochemicals sector, compressed industry margins since 2022 and reduced ethane availability for its Etileno XXI petrochemical complex in Veracruz state, Mexico. The complex had to rely increasingly on imported ethane, raising operating costs and placing additional pressure on liquidity, it said. Court records show that Braskem Idesa sought authority to obtain post-petition financing, use cash collateral and provide lenders with the protections typically associated with DIP facilities. The company argued that immediate access to additional liquidity was necessary to preserve asset value, maintain commercial relationships and support ongoing operations throughout the Chapter 11 process. Braskem Idesa, a joint venture between Brazil's Braskem (75pc) and Mexico's Grupo Idesa (25pc), also disclosed in court filings that it received financial support from its shareholders before the Chapter 11 filing, including emergency financing facilities provided by entities affiliated with Braskem. Separately, Braskem told investors that it expects to remain the controlling shareholder of Braskem Idesa following completion of the restructuring. The Brazilian petrochemicals producer said it supports the Mexican subsidiary's restructuring plan and the financing measures designed to strengthen liquidity and facilitate implementation of the reorganization. The development comes as Braskem pursues a broader financial restructuring aimed at restoring a sustainable capital structure amid a prolonged global petrochemical downturn. Braskem is separately negotiating with creditors to strengthen its capital structure. The company reported recurring Ebitda of R5.25bn ($1.04bn) and profit of R3.33bn in the second quarter, supported by stronger petrochemical prices and wider polyethylene spreads in Brazil and Mexico. Sao Paulo-based Braskem operates production assets in Brazil, the US, Mexico and Europe, serving customers in more than 70 countries. By Fred Fernandes Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Ineos to regain full ownership of Runcorn MCP
Ineos to regain full ownership of Runcorn MCP
London, 21 August (Argus) — Ineos Inovyn has agreed to acquire the remaining 50pc stake in Runcorn MCP, including the EDC assets of Vynova Runcorn, which entered administration in late 2025. The deal will return the site to full Ineos ownership, subject to regulatory approval. Runcorn MCP accounts for 89pc of UK chlorine capacity and has chlorine production capacity of 430,000 t/yr, underlining its importance to the country's chlor-alkali and downstream chemicals industries. The site is currently operated as a 50:50 joint venture between Ineos Inovyn and PVC producer Vynova. EDC is the largest outlet for chlorine production at Runcorn. Volumes were previously exported mainly to Wilhelmshaven in Germany and Martorell in Spain for PVC production. By Stephanie Koenig Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
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